Dotterel Corporation Uses the Variable Cost Method of Product Pricing

question 13

Multiple Choice

Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% return on invested assets of $350,000. ​
-The dollar amount of desired profit from the production and sale of Dotterel's product is

• A)$89,600
• B)$39,200
• C)$70,000
• D)$84,000

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Definitions:

Steepness Of Slope

A measure of the inclination of a surface or a line in relation to the horizontal plane, significant in determining the speed and direction of water flow and erosion.

Agents Of Transport

Forces or mechanisms that move sediment or particles from one location to another, such as water, wind, ice, and gravity.

Rock Types

The classification of rocks into three major groups: igneous, sedimentary, and metamorphic, based on their formation process.

Conglomerate

A coarse-grained sedimentary rock composed of rounded clasts cemented together.